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Irina18 [472]
3 years ago
7

Which of the following comes closest to the value at the end of year 6 of investing $600 today (year 0) and then investing anoth

er $600 at the end of year 5 if the interest rate is 3%?
a. $ 1,434
b. $ 1,334
c. $ 1,542
d. $ 1,383
e. $ 1,487
Business
1 answer:
cestrela7 [59]3 years ago
5 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Investment= $600 today and $600 at the end of year 5

Interest rate= 3%

To calculate the final value, we need to apply the following formula on each investment:

FV= PV*(1+i)^n

FV= 600*(1.03^6)= $716.43

FV= 600*(1.03^1)= $618

Total FV= $1,334.43

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elixir [45]

Answer:

The option B. The profits for common stock owners come before payment to​ employees, suppliers,​ government, and creditors. is the false statement.

Profit is any amount that is left after setting aside the cost and liabilities. It is financial gain which is represented by the difference between the amount that is spent and the amount that has been earned or gained. Whereas common stock is a kind of a common share holder equity which also considered to be a type of a security.

8 0
3 years ago
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 20
Andrew [12]

Answer:

b. $102

Explanation:

Data provided as per the question below:-

Cost of basket in 2014 = $51

Cost of the basket in base year = $50

The calculation of the value of the CPI is shown below:-

Value of the CPI = (Cost of a basket in 2014 ÷ Cost of a basket in the base year) × 100

($51 ÷ $50) × 100

= $102

Therefore for computing the value of CPI we simply applied the above formula.

7 0
3 years ago
Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of
VladimirAG [237]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Sales= 8,000 units

Total cost= $612,500.

Selling price= $100.

Selling costs:

commissions equal to 5% of the sales

other selling expense of $45,000.

Administrative expense totaled $47,500

<u>Income statement:</u>

Sales revenue= (8,000*100)= 800,000 100%

COGS= (612,500)  76.56%

Gross profit= 187,500

commissions= 0.05*800,000= (40,000) 5%

other selling expense= (45,000) 5.63%

Administrative expense= (47,500) 5.94%

Net operating income= 55,000 6.87%

3 0
3 years ago
Paying Your Taxes Reading Quiz
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Answer:

b

Explanation:

8 0
3 years ago
Read 2 more answers
A rookie quarterback is negotiating his first nfl contract. his opportunity cost is 10%. he has been offered three possible 4-ye
fomenos

Answer:

He should accept contract 2 because it has a higher present value.

 Explanation:

The numbers are missing, so I looked for a similar question:

<em>year 1 2 3 4 </em>

<em>Contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000 </em>

<em>Contract 2 $2,000,000 $3,000,000 $4,000,000 $5,000,000 </em>

<em>Contract 3 $7,000,000 $1,000,000 $1,000,000 $1,000,000 </em>

<em>As his advisor, which contract would you recommend that he accept?</em>

we need to find the present value of each contract:

Contract 1 = $3,000,000/1.1 + $3,000,000/1.1² + $3,000,000/1.1³ + $3,000,000/1.1⁴  = $2,727,273 + $2,479,339 + $2,253,944 + $2,049,040 = $9,509,596

Contract 2 $2,000,000/1.1 + $3,000,000/1.1² $4,000,000/1.1³ + $5,000,000 /1.1⁴  = $1,818,182 + $2,479,339 + $3,005,259 + $3,415,067 = $10,717,847

Contract 3 $7,000,000/1.1 + $1,000,000/1.1² + $1,000,000/1.1³ + $1,000,000/1.1⁴  = $6,363,636 + $826,446 + $751,315 + $683,013 = $8,624,410

6 0
3 years ago
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